[0IP-31] Integration with Keom Protocol and the Keom Community

Proposal:

This proposal aims to approve the integration of the 0VIX Protocol with Keom Protocol, and the correlated dissolution of the 0VIX Community to the benefit of the Keom Community.

Motivation:

To move on after past challenges, 0VIX expanded its team and adopted fresh perspectives. Rather than merely revamping 0VIX, this new influx resulted in the development of an expanded range of open-source products, which will be progressively unveiled, and a dramatic shift from 0VIX's original mission.

As presented in the rebranding announcement, the vision underpinning Keom extends well beyond traditional money markets. It is to offer a complete spectrum of trading products that reconcile the often conflicting paradigms of decentralization and user protection — two principles we believe can, and should, coexist to foster a more sustainable financial future.

The above catalyzed the realization that 0VIX required more than just incremental changes. A comprehensive overhaul was essential—far beyond a mere name change. 0VIX's existing framework is not optimally aligned with Keom's ambitious new trajectory.

Therefore, Keom is being developed under a separate organizational structure. This new setup incorporates valuable lessons from 0VIX and other initiatives, with the aim of providing a transparent governance model that respects community input while clearly outlining areas that will not be subject to community voting. The description of the setup will be published along with the detailed statutes of the Keom Association.

0VIX undeniably serves as a foundational element for Keom—especially for the growth of its margin trading product. This being said, maintaining the 0VIX community as distinct from Keom would be a suboptimal solution. Therefore, the below depicted plan is suggested to move forward with a full integration of 0VIX, including its community, under the Keom umbrella to seamlessly channel all energy and enthusiasm into the new vision and mission.

Details:

It is suggested to proceed in 4 steps as follows:

Step 1: The Keom Association would fork and redeploy the 0VIX lending protocol as a component of the Keom Protocol, both on Polygon PoS and Polygon zkEVM. This fork will include the security measures voted on in 0IP-29, along with supply and borrow caps. It will list the same assets as those currently listed on 0VIX protocol.

Step 2: All liquidity and positions should be migrated from 0VIX Protocol, both on PoS and zkEVM, to the freshly deployed Keom Protocol. Concretely, the migration will involve:

• the burning of oTokens held by each user and the minting of kTokens automatically allocated to each user whose oTokens were burnt.
• the transfer of all liquidity from 0VIX Protocol to Keom Protocol.
• setting all borrow balances to the same amounts they were on 0VIX Protocol prior to the migration.
• setting all reserves to the same amounts they were on 0VIX Protocol prior to the migration.

Users who do not wish to continue with Keom, can close their position and withdraw their funds prior to the migration. This will be possible at any time for as long as this proposal is open for voting and for seven more days if it is adopted. The effective migration will only be implemented after 7 days following a vote to accept this proposal, leaving time to prepare all necessary steps for a smooth transition.

If funds are left and positions have not been closed, these will be migrated to Keom. There won’t be any change to how these users access their tokens/liquidity subsequently to the integration, other than accessing the new dApp via www.keom.io rather than www.0vix.com.

Once the above step is completed, the frontend of 0VIX Protocol will be taken down. 0VIX Protocol itself will be kept dormant following the integration until December 31, 2023, just in case, and at that date, the ownership of all contracts will be renounced to definitely discontinue any support and leave it as a legacy public good.

Step 3: As initiated in the the rebranding announcement, the 0VIX Protocol Association and its community, which was a body thereof, will be wound down as soon as 0VIX Protocol is paused, and as a result, the 0VIX Protocol Association will contribute its remaining assets, in particular the intellectual property rights of the lending protocol’s code, to the Keom Association. Important Explanation of this step:

• Under Swiss law, associations, particularly those with a non-profit orientation, are required to transfer their residual assets to another organization with a similar mission or objective. It's not permissible for an association to distribute these assets to its members or any profit-driven third parties.
• The 0VIX protocol's code is open source, which means it can be accessed and used freely without licensing fees. However, this open-source status doesn't negate the existence of other intellectual property rights (apart from the right to monetize its usage). These rights, which previously belonged to the 0VIX Protocol Association, will now be transferred to the Keom Association.
• The 0VIX Protocol Association never managed the 0VIX Protocol directly. As such, assets held within the 0VIX Protocol were user-owned and are not viewed as either assets or liabilities by the Association. Given the repercussions of the exploit that affected 0VIX users, the Keom Association will shortly publish details of an "Appreciation Initiative", namely an initiative contributing to recovery for legacy 0VIX users. The value of the 0VIX Protocol is deeply rooted in its early users. Unfortunately, their early participation also meant exposure to unanticipated losses from the exploit. The Keom Association recognizes the sacrifices made by these foundational users and is committed to fairly rewarding them. In doing so, the Association hopes to secure their ongoing support for a project that is poised to reach greater heights.

Step 4: The Keom Association will invite members of the 0VIX community into the Keom Community it intends to build around a governance token, based on a conversion of their preVIX. As mentioned under Step 3, an Appreciation Plan will be put forward, such a plan could lead to additional governance token allocations to legacy 0VIX users affected by the exploit, as part of the rewards.

Quorum standards:

• 100,000 preVIX

Voting period:

• 7 days

Vote options:

• Option 1: Accept the proposal
• Option 2: Further discussion needed